The Carrington power plant, owned by Wainstones Energy, will have a construction period of about 30 months with full operation scheduled for 2013.

The power plant is consented in line with new carbon capture readiness requirements and the company has prepared a plan explaining how they would retro-fit carbon capture and storage equipment to the plant in the future.

The Gas Security of Supply policy statement sets out what is being done to ensure secure gas supplies for the UK in the future. Options considered include: improved market transparency, enhanced financial incentives to balance demand and supply and strengthening shipper and supplier obligations. It also explains why the government is not pursuing the idea of government-commissioned gas storage.

Ed Miliband, energy and climate change secretary of the UK, said: ”As we make the transition to a low carbon future and our domestic gas reserves decline, we remain vigilant about maintaining energy supplies that are diverse and secure.

”While we remain alert, what was shown this winter when the gas market was tested by extreme circumstances is that the existing gas system is working well. Since 2005 we have facilitated a big increase in import capacity, gas storage capacity as well as improving the information available to the market.”